ELISA ARAGON
Co-founder of Nelixia, Guatemala

The global push for a nature-positive economy is more urgent than ever. The Kunming-Montreal Agreement (1) which aims to reverse biodiversity loss by 2030, places industries such as household and personal care at the forefront of this challenge. The fragrance sector, which depends on natural ingredients, plays a unique role in protecting biodiversity. But the real challenge lies in translating ambition into practical actions that nurture ecosystems alongside economic activity.

The fragrance industry’s dependence on biodiversity brings both opportunities and responsibilities. Unsustainable harvesting or monocultures can lead to long-term damage to delicate ecosystems. To safeguard biodiversity, companies must rethink sourcing strategies and engage local communities in sustainable practices.

The fragrance industry can be a powerful force for good by implementing practices that protect the environment while delivering high-quality, natural ingredients. But how can companies make this happen in practical terms? Achieving sustainability requires a comprehensive approach that addresses multiple dimensions of environmental and social impact.

Creating truly sustainable ingredients means recognizing that sustainability is multidimensional. It includes environmental protection, social equity, economic viability, and cultural preservation. To access sustainable ingredients, companies must address all these dimensions simultaneously.

• Environmental Sustainability: Preserving ecosystems, protecting biodiversity, and ensuring that resource extraction does not lead to degradation or depletion of our soils.
• Social Sustainability: Focusing on fair labor practices, community empowerment, and respecting the rights and traditions of local populations.
• Economic Sustainability: Ensuring that all stakeholders in the value chain receive fair compensation, enabling long-term viability and reducing inequalities.
• Cultural Sustainability: Preserving traditional knowledge and practices that contribute to the uniqueness of natural ingredients.

To manage these complexities, companies at the source producing natural ingredients should conduct comprehensive risk assessments of their supply chains to identify potential environmental and social risks, such as deforestation, overharvesting, economic inequality, and the erosion of traditional practices.

This holistic understanding allows for the development of tailored action plans that address the specific needs and challenges of each region or raw material.

For example, when sourcing an ingredient like cardamom in Guatemala, different regions in Alta Verapaz may require distinct approaches based on factors like proximity to natural reserves, local economic conditions, or cultural practices. Customizing action plans ensures that sustainability efforts are effective and respectful of local contexts.

However, it’s crucial to acknowledge that progress requires time and patience. Sustainable change cannot be rushed; it demands ongoing effort and commitment from the entire supply chain; from the producers to the clients. Transparency, collaboration, and continuous improvement are key to addressing all dimensions of sustainability.

Third-party certifications and audits play a significant role in ensuring sustainable practices. Unlike internal monitoring, external audits introduce an impartial perspective, ensuring that companies are held accountable and constantly improving their methods. Certifications like FairWild, Rainforest Alliance and the Union for Ethical BioTrade (UEBT), among others, verify that companies meet strict environmental and social standards.
These certifications help validate sustainability claims and provide assurance to consumers and business partners. 
However, it’s important to focus on continuous improvement rather than viewing certifications as an end goal. The process of verification should be about enhancing practices, reducing greenwashing, and promoting genuine sustainability across all dimensions.

Transforming co-products into natural active ingredients favors the development of environmentally friendly cosmetic innovations. This upcycling approach triggers positive effects on the environment by transforming undervalued resources into finished productsPeru Balsam, a resin extracted from trees in El Salvador, serves as a powerful example of how sustainable practices can preserve biodiversity. Local collectors, known as balsameros, use ancestral techniques and natural tools to minimize environmental impact, preserving the ecosystem in which the trees thrive. Yet, challenges like economic instability, safety concerns, and the erosion of traditional knowledge threaten the sustainability of this practice.
To address these challenges, sustainable initiatives such as providing training on sustainable harvesting techniques, establishing minimum prices for economic stability, and supplying safety equipment to reduce risks have been implemented. Transparency is enhanced through traceability systems that track the product back to individual plots.
The impact of these sustainable initiatives has been significant. While El Salvador has experienced deforestation in many areas, regions managed under sustainable practices have shown an increase in forest biomass (2). 
This demonstrates that sustainable actions can directly contribute to forest preservation and biodiversity protection, benefiting both the environment and local communities. with elevated added value. The maxim “nothing is lost, nothing is created, everything is transformed”, attributed to Lavoisier, takes on its full meaning.

CASE STUDY: GAIACWOOD AND FOREST MANAGEMENT IN EL CHACO
Another example is the sustainable management of Gaiacwood in El Chaco, Paraguay. 
Bulnesia Sarmientoi, or Gaiacwood, thrives only in the Chaco Region of South America, particularly in Paraguay, and is an important ingredient for the perfumery industry.
El Chaco is a unique ecosystem in Latin America known as the “impenetrable forest.” Unsustainable harvesting of this trees once posed a significant threat to the biodiversity of this region, home to over 3,400 plant species and 500 bird species, even more diverse than the Amazonas.
To protect this delicate environment, sustainable forest management plans have been developed since 2018, ensuring the regeneration of the forest while maintaining Gaiacwood production. This involves conducting comprehensive forest inventories to assess species diversity, tree ages, and other critical factors. Selective harvesting methods are used, limiting the number of trees cut to ensure younger trees have the opportunity to mature.
By implementing long-term management strategies and adhering to guidelines that promote forest regeneration, companies can prevent deforestation and preserve the ecosystem. This approach not only protects the local environment but also provides economic benefits for local communities, supporting both biodiversity and livelihoods.

The examples of Peru Balsam and Gaiacwood highlight how the fragrance industry can protect biodiversity while maintaining economic viability. Sustainable practices must become mainstream—not merely optional initiatives or promotional activities. 
This requires commitment throughout the supply chain, including long-term contracts with producers, fair prices, and transparency. Companies at the source can only deliver truly sustainable ingredients if their clients are equally committed. Connecting and aligning everyone in the supply chain is essential to achieving a true “win-win” model—where both nature and businesses benefit, creating shared value for all involved.

By addressing the multidimensional aspects of sustainability—environmental, social, economic, and cultural—the fragrance industry can develop truly sustainable ingredients. This holistic approach ensures that the benefits of sustainability are far-reaching and enduring.

Achieving a nature-positive economy in the fragrance industry requires a comprehensive and collaborative approach. As producers of natural ingredients, we hold a critical role at the very beginning of the value chain. We must act as a bridge between producers and the companies that use our products, enabling our clients’ sustainability strategies on the ground.

To succeed, the entire supply chain must align. This journey demands patience, as sustainability is not black and white but requires ongoing commitment. It also requires concrete actions—such as long-term contracts, fair pricing, and transparency. Sustainability is about creating true wealth, not just profit.

Only through collective action—connecting every part of the value chain—can we achieve a sustainable world where both nature and business thrive together.